A use-side procedure for estimating trade margins in input-output analysis

Abstract

According to the National Accounting Systems proposed by United Nations (1993) and Eurostat (1996), use and make (or supply) matrices should be measured before goods and services are conveyed to the markets (basic values). Actually, the make table is defined in basic values (excluding trade and transport margins and net commodity taxes) whereas the use table is in purchasers’ values (including them). In particular, this paper shows how trade margins can be removed from the use table with the purpose of constructing an input-output table. The proposed approach is based on the use-side procedure from the ESA-95 Input-Output Manual (Eurostat, 2002) and is also being applied to the forthcoming 2000 Andalusian Input-Output Framework